1. How do I create a plan for a payee?
With Plan wizard, you can create a plan for a payee.
2. Can I use the same plan for different payee of the same category?
Yes, the entire plan of one payee can be copied to another payee by selecting the option "Model from other payees plan". This reduces a lot of typing work especially in cases where the plans are identical.
3. How many incentives can I set for a payee?
You can create many incentives for a single payee plan.
4. If I want to give commission for a payee at different intervals in a year, how can I do it?
You can set different payout frequencies like monthly, quarterly, half yearly and yearly as you desire to incent a payee at different intervals.
5. If I do not set quotas/goals, will I be able to calculate commission?
It is not mandatory to set quotas to calculate commissions. You can set the incentives purely based on attainment and calculate commissions.
6. I want to give payee commission with respect to a particular transaction, customer, and product; can I do the same in QCommission?
Yes, you can incent the payee with commission for a particular payee transaction, customer and product by setting the option in the "Additional Crediting Instruction" tab of Set Credit Rule form of the Plan.
7. How many credit rules can I assign for a payee?
For an incentive you can create many credit rules for a payee.
8. How does credit rule affect my calculation?
Credits represent the actual records of performance achieved by a payee. Crediting process executes transaction data through credit rules to determine credit distributions and generates credit records for payees and organizations and/ or managers based on the credit rule settings. In general, any plan that bases credits on transaction data will use credit rules to generate credit records. For example, if a payee receives 100% of the sales amount for a transaction, the rule must be setup in the plan.
9. What are the different criteria available while setting a credit rule?
In the plan, you are allowed to set many criteria while creating credit rules. Basic Crediting Instruction does a basic selection on the payee or payee manager in addition to the credit amount. Additional Crediting Instruction filters transactions based on the criteria selected from the drop downs; for example, you can select territory, customer, product or transaction from the pull-down list. You may set the payout rate/amount as flat amount in-order to calculate the payout amount.
10. What is Expression builder?
The expression builder allows you to create many complex expressions in the plan during calculation and summarization processes. The expression builder contains many predefined variables, operators and parenthesis, which are used to create arithmetic or logical expressions. These expressions may be used as a criteria, or additional calculation to calculate the payout amount.
11. How does an Expression builder work?
Expression Builder is another method to calculate commission in addition to Standard Payout Calculation and direct entry of payout amount. Using the displayed set of variables and operators, you can create more than one arithmetic and logical expressions. Click on Variables or Operators to view its sub options. The highlighted value in the right hand side box is selected when Paste button is clicked.
12. What is a variable in QCommission?
In expression builder, you can create one or more arithmetic or logical expressions using variables. These expressions can be setup as a criterion so as to calculate the payout for a payee.
13. In how many ways I can calculate Sales Commission?
In QCommission, there are three different ways to calculate the payout:
- Calculated Payout Amount already calculated and available: It uses the credit amount generated during the crediting process.
- Open calculation and expression builder: You may setup expressions using predefined variables to calculate the payout.
- Standard Payout Calculation: Calculates the payout amount by multiplying the credit amount generated during the crediting process against the commission rate obtained using the Rate Lookup for the selected plan period.
14. I want to calculate commission just for one Payee; can I do that?
QCommission lets you to execute the plan for a single payee. In the Plan Statement, you can carry out a lot of exciting actions. Action button on the plan statement provides many features including Calculate Plan that calculates the payout for the particular plan.
15. I want to give a minimum payout amount irrespective of the calculated commission; can I do the same with QCommission?
Yes, you can set the minimum amount for payee by means of specifying the draw amount by which a payee is eligible for a minimum payout amount.
16. Can I limit the amount to be given to payee if his commission exceeds a certain amount?
Yes, if the commission amount is large, the payout amount will be adjusted against the cap amount set in the summary payout of the plan. Cap is the upper limit for earning commission.
17. Where can I get sample plans and data?
18. What is Event based crediting? How is it used to calculate commission?
Transaction Status can be considered based on the Events like Invoiced, Shipped, Ordered or Paid. QCommission allows to set the credit, calculate and pay the commissions based on these events.
19. What are the different options used to calculate Gross profit, while importing from QuickBooks®?
QCommission provides different options to calculate Gross Profit while importing from QuickBooks®. It calculates the Gross Profit based on the Costs from Item List/ Costs from Estimates / Costs from Purchase Order.
20. Is it possible to set the calculation order for the plans? If so how?
Yes, It is possible to set the calculation order for the plans. You can set the calculation order for the plans at the time of creating a plan using Plan wizard.
21. Can I set calculation order for the incentives? If so how?
Yes, You can set calculation order for Incentives. You can set the calculation order for Incentives at the time of creating a plan using Plan wizard.
22. I want to schedule my calculation process/import process. How could I do?
Batch maintenance enables you to create and schedule batches for the calculation process and import process.
23. What are the data that will be carried forward when moving to the next fiscal year?
QCommission allows to carry forward the data such as Calculated Amount to date, Cap forward Amount to date, Draw/Advance Amount to date, Paid Amount to date, Calculated Amount after adjustment to date when moving to the next fiscal year
24. Can I pay commissions to one of my employees and treat it as a 1099 payment?
No, commissions cannot be paid on 1099 basis, if the recipient is an ‘employee’. There are payroll and income tax implications. Please talk to your accountant.
25. How do I decide what commission rate to pay my sales rep?
There is no right commission rate for a sales rep; it has to be determined on a case by case basis. Typically commission rates have to be determined based on various factors. Some questions to be answered are:
- Should the commissions be based on Revenue or Gross Profit?
- What is the expected for the quota for the sales rep for the year?
- What is the targeted compensation for the sales rep if they met quota?
- Do I want to pay the commission as a flat rate or a tiered rate with attainment?
Based on these questions a commission rate can be determined and assigned to the rep.
26. My sales reps’ commissions are very seasonal. How do I make sure they have a more predictable income stream?
One way you can do that is by using a Draw and Cap in combination in the QCommission software. The Draw makes sure the payment amount does not fall below a minimum amount, whereas the Cap makes sure the amount does not exceed a maximum amount. If it exceeds the Cap the extra amount is stored in the system and paid out in future periods. If it falls below the Draw amount, the system advances some commissions which can be recovered against future earnings.
27. Can QCommission calculate commission on gross profit?
Yes, QCommission can calculate commissions based on gross profit, in addition to revenue and quantity. QCommission can use costs from items, estimated, purchase orders and/or bills in a sophisticated manner to figure out gross profit. It can also be configured to figure out job profitability for an entire job.
28. Can QCommission avoid paying commissions on incidental charges such as Shipping?
Yes, QCommission can disregard specified invoice related charges and calculate commissions on the rest of the transactions.
29. Can QCommission split commissions across more then one payee?
Yes, QCommission can split commissions across any number of payees. QCommission can also understand split percentages for each payee’s credit. QCommission can also pay overrides to managers and other payees.
30. How do we handle employee contributions towards benefits if a sales person makes no sales in a pay period. Would that be an automatic deduction forwarded to the next payroll cycle? How does QCommission handle it?
The resolution is at the company’s discretion. Here are the options in that scenario:
Company calculates the contribution due in those periods and pays it. A) then it forgives that amount or B) it recovers against future commission payments or C) asks the sales rep for a check for the contribution amount
We recommend the following option using our software. Calculate the possible periodic contribution amount and established at as a Draw amount in our software. Then when the commissions fall behind it the software will pass the minimum contribution amount to payroll. It will maintain a balance of such amounts and automatically adjust future payments down by the payments made by the company on behalf of the rep.
31. As part of sales commission, a recoverable draw is paid to the sales person. Is the draw amount taxable?
It depends!
The draw amount is taxable if it is provided through payroll. Example, if the saleperson is on a draw of $5,000. If in month 1, they earn $3,000 in commissions and you provide a draw of $2,000 to make the total amount equal to $5,000, then you will be calculating taxes on $5,000 worth of income. If in month 2, they earn $7,000 in commissions, then you would recover $2,000 for the draw you already provided leaving them $5,000 in income which is taxable. Generally the tax effect should wash out as you recover the draw.
If the draw is not provides as part of payroll and given as a separate check and treated distinctly as a loan, then it is not taxable. You may have to charge interest depending on the amount and term of the loan. There are imputed interest rules if the loan is over a certain amount and term. If the loan is forgiven, it will become income to the employee and will then become taxable. Different rules apply for owners of the firm. Your accountant may need to clarify further.
